STATE OF INDIANA

OFFICE OF THE GOVERNOR

State House, Second Floor
Indianapolis, Indiana 46204

Michael R. Pence
Governor

June 24, 2015

President Barack Obama
The White House
1600 Pennsylvania Avenue, N.W.
Washington, D.C. 20500
Dear Mr. President:
I write regarding the Environmental Protection Agencys (EPA) proposed Clean Power
Plan to regulate carbon emissions from existing power plants. As I wrote to
Administrator McCarthy on December 1, 2014, the proposed rules are ill-conceived and
poorly constructed and they exceed the EPAs legal authority under the Clean Air Act.
My administration continues to believe the plan should be withdrawn because it will raise
electricity costs on Hoosiers, result in less reliable electricity and impede economic
growth and prosperity in Indiana and the rest of the country.
If your administration proceeds to finalize the Clean Power Plan, and the final rule has
not demonstrably and significantly improved from the proposed rule, Indiana will not
comply. Our state will also reserve the right to use any legal means available to block the
rule from being implemented. I believe the Clean Power Plan as proposed is a vast
overreach of federal power that exceeds the EPAs proper legal authority and fails to
strike the proper balance between the health of the environment and the health of the
economy.
Our nation needs an all of the above energy strategy that relies on a variety of different
energy sources. Energy policy should promote the safe, environmentally responsible
stewardship of our natural resources with the goal of reliable, affordable energy. Your
approach to energy policy places environmental concerns above all others.
In Indiana, we are doing our part. Our 300-year supply of coal has enabled us to offer
electricity rates among the lowest in the nation for many years, but, as good stewards of
our resources, we have taken steps to diversify our energy portfolio to maintain our
competitive edge. The wind industry has grown rapidly in Indiana, and solar installations
have multiplied in recent years. We draw nuclear power from reactors in Michigan, and
we have a natural gas market on the verge of a breakthrough. We are working to diversify
our energy portfolio to keep prices in check and move our economy forward.
For our economy to grow, we need affordable, reliable energy. The EPAs Clean Power
Plan will contribute to higher electricity prices at a time when our economy can least
afford it, and it will drive investment to other countries instead of creating jobs here at

President Obama
June 24, 2015
Page 2
home. A historically low cost of energy has played a major part in making Indiana the
most manufacturing intensive state in the country.
The higher electricity prices brought by the EPAs plan will inhibit our ability to advance
our manufacturing base and the jobs it creates.
Perhaps even more important than affordability is the reliability of our energy. Whether
at home, on the farm, or in the factory, Hoosiers need to know that electricity is available
when they flip the switch. The prospect of electricity shortages do not promote economic
development and reliability becomes a significant concern under your policies. The Clean
Power Plan and your administrations policies seek to deprive Hoosiers of the very
energy source that has provided us with reliable electricity for generations: coal. This
plan will force the premature closure of reliable coal-fired power plants, threatening our
stable source of affordable electricity. Our nation cannot afford your climate plan, and
Indiana will not stand for it.
More than a violation of the goals of affordable, reliable energy, your plan ignores the
separation of powers enshrined in our nations Constitution. To realize the carbon dioxide
emission reductions you seek, Indiana will have to fundamentally change the way
electricity is dispatched. Currently, electricity is dispatched according to lowest price,
which is consistent with the goals of affordability and reliability that drive energy policy
in our state. Under your plan, sources of electricity are determined according to lowest
carbon dioxide emissions. In other words, carbon dioxide drives the decision, not cost. A
change of this magnitude should not be done through administrative fiat. Only Congress
can appropriately debate and determine this course for our nation.
As Governor of Indiana, I am deeply concerned about the impacts of the Clean Power
Plan on our state, especially our job creators, the poor, and the elderly who cannot afford
more expensive, less reliable energy. I reject the Clean Power Plan and inform you that
absent demonstrable and significant improvement in the final rule, Indiana will not
comply.

Sincerely,

Michael R. Pence
Governor of Indiana